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Airbnb has introduced the ability to split your payments for a stay. The new system, called “Pay Less Upfront”, came into effect as of January 15, 2018. According to the Airbnb press release, the functionality comes in response to the fact that 40% of its customers opted to use this option in testing. Most of those who opted for a split payment also opted to take up higher priced bookings when making a split payment.

Pay Less Upfront Key Features

Pay Less Upfront is only available for bookings of more than $250

Pay Less Upfront is only available on bookings made at least 14 days in advance

In most cases, the initial payment is a 50% deposit

The balance will be charged just prior to the stay

Airbnb will notify you 3 days prior to the balance of payment being charged

Our Take

At first glance we love this, especially given how many friends and groups we know that use Airbnb when traveling. However, keep in mind that Airbnb has self-admitted that allowing split payment has increased potential revenue with many people opting for a more expensive rental.

That isn't a bad thing, but just remember that this isn't 100% altruistic — it is a smart business decision. Remember, odd pricing came into effect when stores realized that one of the aspects of human psychology was that charging an odd price ($9.95 or $9.99 instead of $10.00) led to people buying more of the product. So, while you will benefit from convenience thanks to this new payment method, Airbnb wins as well.

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I think this is a very helpful option… I am still reluctant to go this route, Airbbb vs regular hotel chains as i like to get points, but one day i might need something more rural or if my hotel of choice isn’t available.

Made a reservation last week for a long term stay and tried to use their feature that splits up the payment between hte guests – wasn’t allowed even thought the terms never said so. Wonder if this feature if available for long term stays?

I wonder how much of an uptick they will see in bookings now? It is very smart to give extra options to buy. It opens them up to a broader audience and a lot of people like to possibly charge half on a certain credit card and the other half on another one.
I still cannot bring myself to use AirBnB. It’s someones house, etc. I feel like I’m intruding. Oh well, maybe one day.

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